The cryptocurrency community was in a frenzy Tuesday night after Ripple’s stablecoin RLUSD launched in select exchanges worldwide – over 700,000 posts were about “1la RLUSD” as crypto holders raced to explain why the stablecoin traded at $1.50 at one point earlier in the day on MoonPay.
Many crypto users expressed frustration over what appeared to be a misunderstanding among newbies in the market who were reportedly swapping their XRP coins to obtain RLUSD.
What is $RLUSD?
RLUSD is Ripple’s stablecoin that launched Tuesday to a very excited crypto market. Being a stablecoin, it was designed to maintain a price in line with that of the U.S. dollar.
Ahead of the much-anticipated stablecoin’s launch, Ripple CTO David Schwartz explained that RLUSD “is not an opportunity to get rich.” He noted that short-term changes in the stablecoin’s prices are possible due to supply shortages amid increased demand.
He went on to say that if holders want to spend much more money to get a hold of the first few RLUSD tokens, they can, but they also shouldn’t expect that the stablecoin’s price will remain above $1 once everything stabilizes.
“Please don’t FOMO (fear of missing out) into a stablecoin!” he warned.
So What’s the Fuss?
Crypto users are now taking to X to express their frustration over some XRP holders who were selling their altcoins “for RLUSD when it is a stablecoin.”
Some Ripple fans made bids on the stablecoin ahead of the launch, with some investors willing to pay up to 511 XRP tokens (over $1,000) to acquire the first few issued RLUSD coins.
Analyst Zach Rector also blamed people “trading XRP to RLUSD” on the apparent halt in the XRP token’s surge. XRP, the native crypto of the XRP Ledger, surged upon RLUSD’s launch, but has since slightly retreated.
Some crypto users felt bad for new entrants into the crypto space, saying it appears they were “uninformed” about how stablecoins work.
Ripple’s Stablecoin Better than Current Leaders?
Meanwhile, there have been comparisons over RLUSD to the existing leaders in the stablecoin segment, Tether’s USDT and Circle’s USDC.
For some industry analysts and observers, the Ripple stablecoin may be a better choice for people who want to utilize the payments power of stablecoins. The key reason is the RLUSD’s stamp of approval from the New York State Department of Financial Services (NYDFS).
Under the regulator’s watchful eyes, Ripple is required to undergo real-time audits to verify its dollar reserves. In the case of USDT, Tether has been plagued by questions on transparency, specifically on its reserves, due to a lack of consistent reporting.
It remains to be seen how RLUSD will perform in the coming days and if it can, in the future, challenge USDT’s dominance in the stablecoin market.
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